A.M. Roundup

The state budget deficit is now $2.1 billion. “This will force us to make further difficult choices,” said Gov. David Paterson. Revenues are $305 million below what was expected, with the rest of the deficit a result of higher general fund payouts.

Eleven Democrats are seeking consideration for the 23rd Congressional District seat, they will meet with party chairs on August 10. Meanwhile, Rep. John McHugh sailed through his confirmation hearing with few speed bumps.

New York taxpayers will now pay for eggs donated for stem cell research.

More state and national news after the jump.

An Appellate Division judge has ruled that Richard Ravitch can remain lieutenant governor while the case proceeds, but cannot preside over the Senate.

Attorney General Andrew Cuomo details bank bonuses, declaring “There is no clear rhyme or reason to the way banks compensate and reward their employees.”

Sen. Chuck Schumer’s “cash for clunkers” program has been suspended — it was so successful that it ran out of money.

NYC Mayor Rudy Giuliani jokes, “the only way I could get elected governor is the way I got elected mayor – things have to be so bad.” If I thought I could make a real difference in the state, really change things . . . I would do it,” he continued.

Sen. Hiram Monserrate loses a bid to dismiss charges in the domestic assault case in which he is accused of slashing his girlfriend’s face. He also loses on a request to suppress his girlfriend’s initial hospital accusation and a videotape from his building.

Emails show a larger White House role in the prosecutor firings during the Bush administration.

Dan Balz suggests that the polls don’t tell the whole story about where Obama stands with the public.

Members of the House ethics committee, who are investigating a pattern of lawmakers steering federal funds to generous defense contractors, have just had their own pet military projects approved by the same committee whose activities they are probing.

At the “beer summit,” there were plans made for lunch, but no apologies.